The home medical equipment (HME) landscape is changing, shaped by consumers who want to stay in their homes as they age rather than move to medical facilities. Those consumers are also more vocal in wanting HME that fits their lifestyles, rather than products that just meet minimal requirements.
Those are among the takeaways from a recent interview with Paul Miller, Medline’s Director of Business Development for HME. In an August conversation published to the Medline Web site as part of the manufacturer’s Healthcare Trends series, Miller noted that the industry faces both opportunities and challenges as consumers’ preferences evolve.
The interview begins by quoting a 2022 McKinsey & Company study that says up to $265 billion in funds for Medicare fee-for-service and Medicare Advantage beneficiaries “could shift to the home by 2025.”
Asked about the greatest opportunities for HME dealers in the near future, Miller said, “The investment in patient-centered care is creating greater opportunities for partnership and innovation in the HME space. We are seeing the needs of consumers change as the desire to stay home is at an all-time high.”
Miller added that while previous generations of seniors took the equipment insurance providers gave them, today’s HME consumers are demanding more. “In the past, patients primarily accepted whatever insurance would cover, often settling for the bare minimum,” he explained. “Now they are seeking products that cater to their lifestyle. HME providers should take a closer look at how industry partnerships with suppliers can help manage growth for the future. Going through the pandemic and allocation from supply chain challenges led business owners to reconsider their partnerships and identify those capable of helping them scale their businesses.”
Not surprisingly, Miller listed funding as among the industry’s most formidable challenges going forward. “Reimbursement reform is an ongoing priority for HME providers, as the rates they are currently being reimbursed at are still based on 2015 figures,” he said. “Implementing rate floors, especially in traditional Medicaid and managed Medicare states, will help keep patients at home while managing the cost of care.”
He also pointed out that auditing can be a major challenge for HME suppliers. “This process is usually inconsistent and varies by insurance plan,” Miller said. “An HME owner can potentially have numerous contracts with different insurance plans, each with its own unique auditing requirements. Due to limited resources and the lack of suitable technology to facilitate audit management, HME owners often struggle to meet these demands. Consistent regulations can help ease the burden HME owners face.”
As for how suppliers can shape their own futures, Miller said, “HME owners are well aware of the issues impacting their business, and everyone has ideas on what can move the industry forward. Advocacy is an important step in having your voice be heard. Writing letters and signing petitions are common traditional forms of advocacy, but social media has become a tool for connecting with like-minded people to create a larger network of supporters.”
He added that Medline believes it’s important to understand the challenges their customers are facing. “That’s why in 2023 Medline attended the AAHomecare Leadership Legislative Fly-In to advocate on behalf of HME owners and speak with Congressional leaders on issues impacting the industry,” Miller said.
Read the entire interview on the Medline Web site.
Image: istockphoto.com/Halfpoint
